Why is electricity so expensive?
The combination of persistent cold driving up demand, little wind and low reservoirs after a dry start to the year are contributing factors. Experts also pointed to the new line between Finland and Sweden, the Aurora Line, which means that northern Sweden in particular is affected by prices in the neighboring country.
For many people, the cold also becomes a kind of double burden. On the one hand, this increases the heat requirement in individual households, which can increase consumption and thus costs. According to statistics from Energiföretagen, 12 percent more electricity was consumed in Sweden last week than in the same week last year. This in turn contributes to the price per kilowatt hour rising on the electricity market.
Will it be like the crisis winter of 2022-2023 again?
The average spot price (before taxes and corporate surcharges) was just over one krone per kilowatt hour in all Swedish electricity regions in January. So far in February it is slightly higher, but still below 1.5 crowns, and there are still two weeks left in February that could affect the average.
Compared to January 2023 during the so-called electricity crisis, prices in southern Sweden are similar. The two northern river areas performed significantly better last time, so the difference there is larger in comparison.
However, if you look back just one month, to December 2022, today’s prices pale in comparison. At that time, the average prices in SE3 and SE4 were around three crowns per kilowatt hour and the individual daily averages were around five crowns per kilowatt hour.
There is a small path to get to these levels.
Will we get electricity support now?
Don’t rely on it. Like last time, there was no mention of a check with money and there doesn’t seem to be any other help either. The state electricity price cap introduced at the turn of the year only takes effect when the monthly average price on the electricity exchange exceeds SEK 1.5 per kilowatt hour. So far in February there have only been two days with a higher average price, and analysts don’t expect there to be more.
“For the whole of February we will most likely not reach 1.50,” Johan Sigvardson of power company Bixia told TT earlier this week.
The government also has no plans to lower the upper limit, Energy Minister Ebba Busch (KD) told Swedish radio.
What can you do to reduce consumption?
You don’t need a lot of investment to influence your electricity consumption. Relatively small efforts at home can make a difference.
For many people, the biggest culprit is the heating system. Depending on how the house is heated, this can account for up to half of the total energy consumption. It is commonly said that if you can live with a temperature drop of just 2 degrees, you can save ten percent of your heating costs.
Another big part of the cost is water heating, especially for those who have a water heater. Shortening shower time, avoiding washing dishes under running water, and the like can make a difference.
Electrically heated floors and heated towel rails can also make a difference. Certainly they can regulate the overall indoor temperature, but they may still be worth considering.
Anyone who has electricity tariffs on their electricity bill should also think carefully about when large energy guzzlers such as electric cars or saunas will be used. This also applies to those who have a quarter price agreement with their electricity trading company.
Also read:
This is how you can counteract the new electricity costs
The price of electricity will rise in 2026 – hitting the north hard
